Government Accountability in Focus at Post Office Horizon Scandal Inquiry Amidst Compensation Promises

Minister points to government responsibility in Post Office scandal, amid audible disapproval at Lib Dem leader's remarks

As the investigation into the Post Office Horizon scandal continues, two ex-ministers tied to postal affairs testified, with the current administration promising a briefing on the compensation strategy prior to the parliamentary summer break.

Business journalist @taaffems

Thursday, July 18, 2024, at 5

A high-ranking official informed the Post Office Horizon IT Inquiry that the government should be held responsible for the scandal, whereas the head of the Liberal Democrats claimed that top executives at the company had deceived him.

During his tenure as postal affairs minister from 2007 to 2009, Pat McFadden, who is currently serving in the Cabinet Office, oversaw a period marked by significant judicial errors.

Liberal Democrat leader Sir Ed Davey, who served as the minister responsible for postal affairs from 2010 to 2012, also testified at the inquiry set up to examine the Post Office's incorrect prosecution of over 700 sub-postmasters.

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He claimed that he was deceived by the Post Office, identifying former managing director David Smith and previous chief executive Paula Vennells as the individuals involved.

Sir Ed's statement indicated, "When officials or intermediary bodies such as the Post Office deceive you, it becomes inherently challenging for any minister, burdened with a complex and demanding portfolio, to possess enough information to doubt the responses they have accepted in good faith."

"Still, I regret not being able to discern the inaccuracies in the information provided to me, and I apologize for that oversight."

There was a collective murmur of displeasure from those attending the hearing when Sir Ed admitted that he had no recollection of having read an initial letter from ex-sub-postmaster Sir Alan Bates, which had sought a discussion on the matter.

He had ended his reply by stating he did not think a meeting would be beneficial.

Sir Ed described the response as "abrupt" and offered an apology. He acknowledged that his judgment was lacking and mentioned that he acted on advice without questioning it initially.

Throughout his testimony, he emphasized that his actions were in line with the guidance provided by departmental experts.

While he was testifying, the newly formed government declared its plans to provide a briefing on the reimbursement procedure for sub-postmasters prior to the parliamentary summer break.

Public oversight of

During Thursday morning's testimony, attention was drawn to the government's failure to detect the scandal.

In his testimony, Mr. McFadden stated, "if it is owned by the state, the government will ultimately be held responsible."

"I must emphasize that the legislation enacted and the Postal Services Act were intentionally designed to establish this division."

Appointing ministers as "shadow chief executives" would not stop leaders of government-owned enterprises from acting independently or unpredictably, he mentioned, noting that ministers depend on the information provided to them.

Further Reading: Post Office Executive Temporarily Steps Down Before Inquiry Testimony; Ex-Sub-Postmaster Sir Alan Bates to Be Awarded Honorary Degree

Since the early 2000s, the Post Office has been using a defective accounting system known as Horizon. This software mistakenly reported financial discrepancies, leading to the prosecution of numerous sub-postmasters throughout the UK for theft and false accounting by the Post Office.

The investigation has garnered fresh interest following the ITV drama "Mr Bates Vs The Post Office."

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"I regret not doing enough."

Even though former Home Secretary Jacqui Smith contacted him regarding the worries of her constituent who was a sub-postmaster, Mr. McFadden did not alert the Post Office to the issues.

"Looking back on these letters today and considering the wrongs suffered by numerous sub-postmasters, I certainly regret not questioning the Post Office more about the reliability of their IT system," he stated.

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He also refuted claims of having discussed the Horizon-related allegations made by sub-postmasters with the then business secretary, John Hutton.

He mentioned that none of the department's officials brought up the matter with him. "I have no evidence or reason to suspect that the department's officials were getting any information that differed from what the Post Office's responses indicated," his witness statement read.

"Government ministers depend on the data provided by bureaucrats."

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Considering if he should have questioned the Post Office further about the reliability of its IT system, Mr. McFadden remarked, "Had I pursued that, I believe [the Post Office] would have maintained its stance of no responsibility for the accounting discrepancies, using previous court rulings as validation."

He noted that he learned about the legal actions in February 2009.

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